This Must Stop!
by Rob Kirby
KirbyAnalytics.com
December 18, 2006

Folks who still have the capacity to independently read, write and articulate themselves need to gather their wits and express their condemnation at what’s become of our financial markets – the “so called” heart beat of our Free Market Capitalist System.

As Mr. James Turk reveals in a piece he penned this past weekend – Friday’s late afternoon “massacre” of the gold and silver price on the COMEX exchange bears the unmistakable signature of a GOLD CARTEL,

“the unholy alliance between a few of the big bullion trading banks, several central banks with large gold holdings and the US government. This reprehensible group seeks to manage and completely control the gold price to their advantage, regardless of the disruption that they cause to the free-market.”

For those of you who might be scratching your head wondering what I’m speaking of, here’s a picture of exactly what the esteemed Mr. Turk is referring to [ the slaughter in the silver market was even more pronounced ]:

Turk goes on to point out,

“Each of the cartel members has a different objective. The US government aims to make the dollar look worthy of being the world’s reserve currency, which it hopes to do by beating up on gold, which was the world’s global currency until it was supplanted by the dollar.”

He then eruditely explains the significance / timeliness of this “ambush” on the price of precious metal;

“Because London closes at 12:00 noon New York time, trading during the 1½ hours to the 1:30pm New York close is notoriously thin, which means it is a difficult time to liquidate large positions. The gold cartel knows this, so the late Friday sell-off depicted above is not the first time one has happened.”

If there is any doubt in your mind as to the intentions of the sellers – ask yourself what possible motivation could ANYONE possibly have to precipitously hammer the price of a valuable commodity DOWN at a time when the market is its thinnest [London closed and gone for the weekend]? You see folks, in the absence of MARKET MOVING NEWS – there is NO reason why ANY profit maximizing entity would undertake to sell their goods at less than the going market rate – unless their motives are OTHER THAN POFIT MAXIMIZATION [price rigging].

And the last time I checked, Price Rigging is still illegal under the auspices of the Sherman Antitrust Act in the United States.

While the U.S. Government, bullion banks and Barrick Gold Corp. have in the past been subject of litigation in this regard, perhaps the most telling account of market manipulation ever admitted was by none other than Barrick Gold themselves when they submitted in court of law,

“……a motion arguing that in borrowing gold and selling it into the market, the company was acting as the agent of central banks and carrying out their policies in the gold market and thus should share their immunity from lawsuits.”

As clearly demonstrated here, the Cartel was at it again today – especially in the silver market – with the price of silver “diving 3 % [.40] in a space of 15 minutes this morning – again in a vacuum – devoid of market moving news;

Folks, this is Lie – plain and simple. Metals prices are being manipulated down to hide the fact that government [or the Fed] is PRINTING TOO MUCH MONEY. This is why – contrary to government data saying inflationary pressures are non existent – the cost of virtually EVERYTHING from base metals to crude oil has increased in recent years.

Rising metals prices have ALWAYS served as the canary in the coal mine to alert investors of excessive money creation.

This is why precious metals cannot be seen to be “precious”.

For the sake of the integrity of our Capital Markets – this must stop! 

© 2006 Rob Kirby
Editorial Archive

CONTACT INFORMATION
Rob Kirby
Kirby Analytics
Toronto, Ontario, Canada
Email

The opinions of FSU contributors do not necessarily reflect those of Financial Sense.